The luxury resale market is booming, but at what cost? As the demand for pre-owned designer goods skyrockets, the need for authentication has never been more critical.
A booming market: The global resale market for fashion and luxury goods is on an impressive trajectory, growing at a rate of 10% annually, outpacing the traditional market threefold. By 2030, it's projected to reach a staggering $360 billion, up from $210 billion today. But here's the catch: with this growth comes a surge in counterfeit manufacturing, making authentication a make-or-break factor for resale platforms.
Counterfeit concerns: Counterfeiters are becoming increasingly adept at creating fakes that are almost indistinguishable from the real deal. From fake Hermès bags to Rolex watches with swapped parts, horror stories abound. Some counterfeits are so convincing that they're called 'superfakes', reportedly made with materials from the same suppliers as the original brands. And this is where it gets controversial—even luxury brands themselves sometimes struggle to detect these fakes.
Buyer beware, but not alone: The secondhand industry has traditionally operated under the principle of 'caveat emptor', leaving buyers to fend for themselves. But as the market expands, platforms are stepping up their game. Singapore's Carousell, for instance, has opened a physical store where sellers can have their items authenticated by experts before resale. This shift is significant, as it provides buyers with an added layer of protection and trust.
The science of authentication: Companies like Carousell and South Korea's Bunjang are investing heavily in authentication. Bunjang has developed a proprietary system that combines traditional visual inspections with scientific equipment and AI, trained on vast data sets. This system claims a remarkable 99.9% accuracy rate and can adapt to evolving counterfeiting methods. Carousell, too, has a rigorous verification process and offers a money-back guarantee on authenticity.
Trust pays off: This focus on authentication is paying dividends. Bunjang reports that luxury goods now account for over a quarter of its platform's $1.1 billion annual gross merchandise value, with transactions and total value rising 30% year-on-year in the first half of 2025. Carousell, while not disclosing specific figures, also notes strong interest and growth in the luxury segment.
A new generation of luxury consumers: The appeal of the secondhand luxury market goes beyond affordability. Samantha Virk, from Vestiaire Collective, notes that shoppers are increasingly drawn to rare or discontinued collections. Younger generations, with their limited budgets, are embracing a new model: buy, enjoy, and quickly resell. This shift in consumer behavior is driving the market's growth, as Millennials and Gen Z lead the charge in redefining luxury consumption.
The future of luxury resale: As the market continues to evolve, the question remains: how can platforms maintain trust and authenticity in the face of ever-improving counterfeits? And what role will AI and technology play in this ongoing battle? The future of luxury resale is a fascinating and complex story, one that will undoubtedly shape the way we buy and sell luxury goods for years to come.
